Ex-manager drains EPF savings in seven years

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Retiree warns of rapid EPF depletion. - Image for illustrative purposes only

House renovations, weddings eat up retirement nest egg

KOTA BHARU - A former manager of a direct selling company in the East Coast, Abdul Rahman Abdullah has depleted his RM750,000 Employees Provident Fund (EPF) savings within seven years of retiring in 2017.

The 64-year-old former private sector employee said that his savings were also used to cover living expenses during his retirement, which began in 2017.

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After serving for 27 years with an overseas-based company, he decided to retire at the age of 57.

"I received a retirement sum of RM750,000, comprising RM500,000 from Account 1 and RM250,000 from Account 2," he told Sinar.

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Abdul Rahman detailed his expenditures, saying, "The money was used to renovate the house, costing around RM200,000, which included building a concrete fence and adding a kitchen and garage.

"An additional RM70,000 was spent on the wedding ceremonies of my two daughters in 2016 and 2018, while the remaining amount was used for daily expenses such as food, utilities, internet, and car fuel throughout my retirement."

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The father of five noted that he renovated the house to provide comfort for his married children when they return home for festive seasons.

He added that the high cost of living and the expensive prices of goods also contributed to the rapid depletion of his retirement funds.

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"Every time I go out to buy groceries, I need at least RM100 or more.

"My advice to retirees is to be thrifty so that their EPF savings can continue to support their lives after retirement.

"I am fortunate because my wife, aged 62, is a government retiree who receives a pension, which helps support our expenses in our old age," he said.